Atal pension yojana is boon for the class of people who belongs to lower income group. It will give a brighter future to them.

1. Atal pension Minimum
investment with
maximum benefits
Prepared by: Pankaj Chourasiya
Mail Id: Pankaj.jsa@gmail.com
Web: https://www.financeadda.in

2. Introduction
 Before Atal pension Yojana I need to tell you the ground reality of our country.
 Most of our people are not covered under any kind of insurance plan or a social
security scheme.
 Once they get old, either they become dependent on their children or have to toil
hard for bread and butter even at this age.
 We have seen senior citizens have to work hard even after the age of 60 yrs because
they do not plan any pension scheme.
 As per Business Standard, 77% Indians don't save for retirement.
 By 2031, the population of people more than 65 years old is expected to grow the
fastest (75%) among all age groups, yet only 23% were saving or planning to save
for retirement in 2016, according to an August 2017 report of a committee on
household finance set up by the Reserve Bank of India (RBI), India’s central bank.

3. What is Atal Pension Yojana
 Atal Pension Yojana is a scheme started by government of India
announced by the finance minister in his budget speech of June’2015.
 Let us first understand what is pension?
 A Pension provides people with a monthly income when they are no longer
earning.
 Atal Pension Yojana (APY), a pension scheme for citizens of India, is
focused on the unorganized sector workers.
 To put it in other words if you work for private sector and wish for fixed
amount of pension after you quit the job then Atal Pension Yojana makes
it possible.
 Under the APY, guaranteed minimum pension of Rs.1,000/- or 2,000/- or
3,000/- or 4,000 or 5,000/- per month will be given at the age of 60years
depending on the contributions by the subscribers

4. Eligbility for Atal Pension Yojana
Here are some of the important eligibility criteria-
 The first criterion is you must be citizen of India if you are looking for joining the Atal Pension Yojana.
 Citizens who want to join this scheme must have a valid bank accountbecause all the money transfer
like the contributions and returns will be done through direct bank transfer.
 Now let us talk about the Age factor. The edibility age is 18 to 40 years. So after 40 years of age you
cannot join this
 scheme. Age factor is very important because monthly contribution would depend upon how early you
join the scheme. We will talk about this in detail in coming paragraphs.
 You will get government contribution only if you are not part of any other social scheme and also you
are not a tax payer. Then government can contribute for you.

5. What is the benefit in joining APY
scheme?
 The benefit of minimum pension under Atal Pension Yojana would be guaranteed by the
Government in the sense that if the actual realised returns on the pension contributions are
less than the assumed returns for minimum guaranteed pension, over the period of
contribution, such shortfall shall be funded by the Government.
 On the other hand, if the actual returns on the pension contributions are higher than the
assumed returns for minimum guaranteed pension, over the period of contribution, such
excess shall be credited to the subscriber’s account, resulting in enhanced scheme benefits
to the subscribers.
 The Government would also co-contribute 50% of the total contribution or Rs. 1000 per
annum, whichever is lower, to each eligible subscriber, who joins the scheme during the
period 1st June, 2015 to 31st March, 2016 and who is not a beneficiary of any social security
scheme and is not an income tax payer.

6. What is the benefit in joining APY
scheme?
 The Government co-contribution will be given for 5 years from the Financial Year 2015-
16 to 2019-20.
 At present, a subscriber under the National Pension System (NPS) is eligible to get tax
benefit for the contribution, upto a ceiling, and even for the investment returns on such
contributions.
 Under Section 80CCD(1), investment in Atal Pension Yojana or NPS up to Rs 1.5 lakh qualifies
for income tax deduction. But remember that the total amount of deduction under sections
80C, 80CCC and 80CCD cannot exceed Rs. 1.5 lakh. In addition, an investment up to Rs 50,000
in the Atal Pension Yojana or NPS is deductible from taxable income under Section 80CCD
(1B) of the Income Tax Act, 1961.
 the purchase price of the annuity on exit from NPS is also not taxed and only the
pension income of the subscribers are considered to be part of normal income and
taxed at the appropriate marginal rate of tax, applicable to the subscriber. Similar tax
treatment is applicable to the subscribers of APY.

7. What is the benefit in joining APY
scheme?
 The fixed amount of money will be credited to your bank account every
month after you reach the age of 60 years.
 Anyone can join this plan that is not covered under any other social
security plan. So poor have access to a social security scheme.
 The premium or the monthly contribution is very low.
 The penalty is also very low like Re 1 to Rs. 10 that’s it.
 Government is also going to contribute 50% of the investment Initially
from 2015 to 2020. So it is subsidized.

8. When one should Join
 A lot of people ask when they should join the scheme. Well I tell them as
soon as possible because after 40 years you cannot join the scheme.
 So here I present you with brief points when you need to join the plan.
 If you join at the age of 18 years then the years of contribution would be 42
years and the return will depend upon the amount you contributed.
Accordingly age wise its differs.
 Indicative APY Contribution Chart
Age of Entry Years of
Monthly Pension
1000, Indicative
corpus return Rs.
1.70 Lacks
Monthly Pension
2,000, Indicative
corpus return Rs.
3.40 Lacks
Monthly Pension
3,000, Indicative
corpus return Rs.
5.10 Lacks
Monthly Pension
4,000, Indicative
corpus return Rs.
6.80 Lacs
Monthly Pension
5,000, Indicative
corpus return Rs.
8.50 Lacs
18 42 42 84 126 168 210
19 41 46 92 138 183 228
20 40 50 100 150 198 248

9. Age of Entry Years of Contribution
Monthly Pension Rs.
1000, Indicative
corpus return Rs. 1.70
Lacks
Monthly Pension Rs.
2,000, Indicative
corpus return Rs. 3.40
Lacks
Monthly Pension Rs.
3,000, Indicative
corpus return Rs. 5.10
Lacks
Monthly Pension Rs.
4,000, Indicative
corpus return Rs. 6.80
Lacs
Monthly Pension Rs.
5,000, Indicative
corpus return Rs. 8.50
Lacs
21 39 54 108 162 215 269
22 38 59 117 177 234 292
23 37 64 127 192 254 318
24 36 70 139 208 277 346
25 35 76 151 226 301 376
26 34 82 164 246 327 409
27 33 90 178 267 356 446
28 32 97 194 292 388 485
29 31 106 212 318 423 529
30 30 116 231 347 462 577
31 29 126 252 379 504 630

10. Age of Entry Years of
Contribution
Monthly Pension Rs.
1000, Indicative
corpus return Rs.
1.70 Lacks
Monthly Pension Rs.
2,000, Indicative
corpus return Rs.
3.40 Lacks
Monthly Pension Rs.
3,000, Indicative
corpus return Rs.
5.10 Lacks
Monthly Pension Rs.
4,000, Indicative
corpus return Rs.
6.80 Lacs
Monthly Pension Rs.
5,000, Indicative
corpus return Rs.
8.50 Lacs
32 28 126 252 379 504 630
33 27 138 276 414 551 689
34 26 151 302 453 602 752
35 25 165 330 495 659 824
36 24 181 362 543 722 902
37 23 198 396 594 792 990
38 22 218 436 654 870 1,087
39 21 264 528 792 1,054 1,318
40 20 291 582 873 1,164 1,454

11. How to apply for APY
 Approach the bank branch where individual’s savings bank account is held.
 Fill up the APY registration form.
 Provide Aadhaar/Mobile Number (Aadhar not mandatory)
 Ensure keeping the required balance in the savings bank account for
transfer of
 monthly contribution.
 One can apply online also but for that having saving bank account is
important.

12. What New?
 Government perposed to increase the pension limit to Rs. 10,000 per month.
 The government has amended the rules governing atal pension yojana
 To give an option to spouse to continue to contribute to atal pension yojana for the
balance period of premature period of death of subscriber.
 Exit before the age of 60 Years:
 Voluntary exit in APY is permitted. In case a subscriber, who has availed Government co-
contribution under APY, chooses to voluntarily exit APY at a future date, he shall only be
refunded the contributions made by him to APY, along with the net actual accrued income
earned on his contributions (after deducting the account maintenance charges). The Government
co-contribution, and the accrued income earned on the Government co-contribution, shall not be
returned to such subscribers.

13. Some FAQ’s
Q:Can You Open two accounts?
A: No, absolutely not because only one account is allowed per person.
Q: Who is going to administer this scheme?
A: Pension Fund Regulatory and Development Authority or PFRDA.
Q: Is government going to contribute for this scheme?
A: Yes but it is available for 5 years, from 2015-16 to 2019-20.

14. Some FAQ’s
Q: What is going to happen if I fail to contribute or pay my premium on due
dates?
A: Well! You need to pay fine depending upon your monthly premium. The
fine could range from Re 1 to Rs 10/-. But if don’t pay for 6 months then
account will be frozen, for 12 months deactivated and for 24 months account
will be closed.
Q: Can I change my monthly Contribution plan?
A: Yes you can do it, higher it or lower it.
Q: Can I exit the Scheme before 60 years?
A: No, the exit is permitted only in case of death or terminal disease.

15. Sources & References
 For online forms:
https://npscra.nsdl.co.in/nsdl/forms/APY_Subscriber_Registration_Form.p
df
 Other References:s
 1. https://www.npscra.nsdl.co.in/scheme-details.php
 For Detailed FAQ’s refer:
https://www.pfrda.org.in/myauth/admin/showimg.cshtml?ID=870
THANK YOU